RBNZ releases 2013-14 Annual Report

Mr Wheeler said that the Reserve Bank affects New Zealanders' lives in
a number of ways, including: providing the currency they use, making decisions
on the Official Cash Rate that affect their borrowing costs and return on
savings; as well as regulating the banks, finance companies and insurers that
New Zealanders use.

"We are conscious that the community needs to be confident that we meet
high standards. This Annual Report provides information on
achievements in each of our statutory functions, and how we strive to be a
high-performing small central bank," he said.

The Bank currently has three overarching goals including continuing to
strengthen its performance, developing a more integrated approach to Bank
policy, and improving Bank infrastructure − while reducing the
organisation's risks.

Key developments in meeting these goals in the 2013-2014 year included:

Ensuring monetary policy was consistent with the maintenance of price
stability.

Establishing a Macro-Financial department to lead analysis and advice on
macro-prudential policy, and the introduction of loan-to-value restrictions on
home mortgages to reduce financial stability risk and to cool house price
inflation.

Completing the licensing of insurers, putting a licensing regime in place
for non-bank deposit takers (such as finance companies), and reviewing the
oversight system for the payments system.

Signing contracts for the design and printing of new banknotes, due to come
out in late 2015, and reviewing our currency management procedures, controls and
departmental structure accordingly.

Initiating a review of the Bank's operation of payment systems to
establish a roadmap for development of those operations.

Introducing an annual staff engagement survey, a mentoring programme, and
increasing the investment in management and leadership development.

Financial results show the Bank spent a net $53.3 million on activities
covered by its Funding Agreement, made a net profit of $56 million, and paid a
$20 million dividend to the Crown.

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